Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Brent slips below $111 on US recession fears
Published in Daily News Egypt on 05 - 09 - 2011

LONDON: Brent crude oil fell below $111 a barrel on Monday as fears of another US recession and slowing growth elsewhere raised the prospect of lower demand for fuel.
China's services sector grew in August at the lowest pace on record, a private survey showed, as new orders ebbed and tightening measures to rein in an exuberant property sector started to pinch.
Global growth in services came to a virtual standstill last month as new business all but dried up, adding to fears that the world economy is facing a double-dip recession.
US jobs data came in worse than expected on Friday, adding to worries about the US economy.
Stock markets and the euro — battered by its government debt crisis — continued to fall on Monday.
Brent futures for October fell $1.80 to a low of $110.53 a barrel, and by 1216 GMT were trading around $111.
US crude futures were down $1.85 at $84.60 a barrel, after falling more than $2 to a low of $84.38. US crude settled $2.48 lower on Friday at $86.45. Volume was relatively light with US markets closed for Labor Day.
"Oil is falling on worries over weak demand, unemployment and talk of a double-dip recession," said Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt.
"Prices are still being supported by speculation that the Federal Reserve may launch a third round of quantitative easing (QE3), but I think the market may be too optimistic on that. The first two rounds of easing did little to support the economy, so why should a third round be of any more help?"
Compounding fears of a recession in the United States, Europe faces a string of political and legal tests that could hit efforts to resolve its debt crisis.
Storm watch
Providing some support for prices was oil companies' shutdown of more than half the crude production in the US Gulf of Mexico due to Tropical Storm Lee, which is hindering efforts to restaff and restart oil and gas platforms in the basin.
Lee reached Louisiana's coast early on Sunday, but was moving inland very slowly. High winds grounded helicopters on standby for oil and gas companies that would have otherwise ferried workers out to do post-storm assessments and restaff facilities.
Another storm, Hurricane Katia, intensified over the open Atlantic on Sunday, bulking up to a powerful Category 2 storm, the US National Hurricane Center said.
The Miami-based hurricane center said it was still too soon to gauge the potential threat to land or to the US East Coast with any certainty. But most computer models showed the storm veering on a northeast track out to sea after moving safely west of the mid-Atlantic island of Bermuda later this week.
The European Union imposed a ban on purchases of Syrian oil on Saturday and warned of further steps unless President Bashar Al-Assad's government ended its crackdown on dissent.
In Libya, forces loyal to Muammar Qaddafi refused on Sunday to give up one of their last strongholds without a fight, raising the prospect of an assault on the town of Bani Walid.
The EU has lifted sanctions on Libyan ports and oil firms, but few expect the country's normal oil production — around 1.6 million bpd — to be restored soon.
Olivier Jakob, managing director of oil market consultants Petromatrix in Zug, Switzerland said Thursday would be a key day for markets with the meeting of the European Central Bank and a US presidential speech about job creation:
"Global financial markets are still under a lot of stress (if not under increasing stress) and our opinion remains that in this environment a low risk-profile needs to be observed," Jakob said. –Additional reporting by Francis Kan in Singapore


Clic here to read the story from its source.